The Dow Jones Industrial Average (DJIA) regained some ground on Monday, climbing back toward the 42,500 mark as investors pinned hopes on potential easing of tariff threats from the Trump administration. US equity indexes broadly surged at the start of the new trading week, despite mixed results from the US Purchasing Managers Index (PMI) for March, as industry sectors continue to navigate the uncertainty of trade tensions.
The Dow Jones rose by 600 points, or 1.4%, while the Standard & Poor’s 500 (S&P) gained 1.7%, adding 100 points. The NASDAQ, led by tech stocks, surged by 400 points, marking a 2.2% jump.
President Donald Trump reaffirmed his tariff threats on Monday, signaling that the administration’s broad range of “reciprocal” tariffs would begin in April. However, later in the day, Trump hinted at the possibility of tariff exemptions, suggesting that the ongoing tariff situation could fluctuate.
March’s Manufacturing PMI dropped to a three-month low of 49.8, signaling economic contraction as businesses expressed growing concerns over the impact of tariffs on physical production. Meanwhile, the Services PMI rose to 54.3, surpassing expectations and marking its highest level in three months, as service-based businesses believe they can pass on tariff-induced cost increases to consumers.
In stock news, Tesla (TSLA) experienced a notable rebound, climbing 11.5% to $277 per share. However, the electric vehicle manufacturer remains 37% down from its yearly high near $440. Despite Monday’s recovery, Tesla is still seen as overvalued, with a price-to-earnings (P/E) ratio nearing 122.
For the Dow Jones, Monday’s rally came at a critical juncture, pushing the index back above the 200-day Exponential Moving Average (EMA) at around 42,000. However, the DJIA is still trading below the 50-day EMA near 43,000, despite a nearly 5% recovery from its recent low near 40,700.
